Congress blocks 'victory tax' on Olympic athletes

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President Barack Obama, with first lady Michelle Obama, hugs Olympic gold medal gymnast Simone Biles, after she presented him with a surf board signed by the U.S. 2016 Olympians during a ceremony in the East Room of the White House in Washington, Thursday, Sept. 29, 2016, where the president honored the members of the 2016 United States Summer Olympic and Paralympic Teams. (AP Photo/Manuel Balce Ceneta)

WASHINGTON (AP) — U.S. Olympic athletes would be exempt from a so-called victory tax under legislation approved by Congress and sent to the president.

The Senate gave final legislative approval Thursday to a bill that would block the IRS from taxing most medals or other prizes awarded to U.S. Olympians.

The U.S. Olympic Committee awards cash prizes to medal winners: $25,000 for gold, $15,000 for silver and $10,000 for bronze. That's in addition to the cash value of the medals themselves — about $600 for gold, $300 for silver. Bronze medals have little monetary value.

Because the money is considered earned income, it is taxed — a practice some lawmakers refer to the "victory tax."

The bill would allow Olympic taxes on high-profile athletes such as swimmer Michael Phelps or NBA star Carmelo Anthony who earn more than $1 million a year.

For Phelps, the tax bill for his five golds and one silver won in Rio could be steep — as much as $55,000. Gymnast Simone Biles faces a possible $43,000 tax bill for her haul of four golds and one bronze.

The Senate vote came as President Barack Obama and first lady Michelle Obama hosted several hundred members of the 2016 U.S. Olympic and Paralympic teams to the White House. The U.S. won 121 medals at the Rio Olympics, including 46 gold medals.

The president applauded American women for their performance in the summer games, where they won 61 medals, the most ever.

"2016 belonged to America's women Olympians," he said, singling out Biles, swimmer Katie Ledecky and track star Allyson Felix. Obama also hailed Phelps, the most-decorated Olympian of all time with a total of 28 medals.

Sen. Chuck Schumer, D-N.Y., said many countries subsidize their Olympic athletes. "The least we can do is make sure our athletes don't get hit with a tax bill for winning a medal," he said.

WASHINGTON (AP) — Relatives of Jesse Owens and America's 17 other black athletes from the 1936 Olympics were welcomed to the White House on Thursday by President Barack Obama for the acknowledgement they didn't receive along with their white counterparts 80 years ago.

Along with the relatives of the 1936 African-American Olympians, gloved-fist protesters Tommie Smith and John Carlos and members of the 2016 U.S. Olympic and Paralympic teams met the president and first lady Michelle Obama. Obama congratulated the Rio athletes, thanked Smith and Carlos for waking up Americans in 1968 and praised 1936 Olympians who made a statement in front of Adolf Hitler in Nazi Germany.

TOKYO (AP) — An expert panel set up by Tokyo's newly elected governor says the price tag of the 2020 Tokyo Olympics could exceed $30 billion unless drastic cost-cutting measures are taken. That's more than a four-fold increase from the initial estimate at the time Tokyo was awarded the games in 2013.